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Hungary to cut deficit below 3pc of GDP as part of financing deal

Hungary’s new government hopes to cut next year’s budget deficit below three per cent of GDP as agreed with lenders and will seek IMF/EU backing for reforms to raise the country’s growth potential, the deputy prime minister said.

Tibor Navracsics reiterated that the centre-right Fidesz government was firmly committed to this year’s 3.8 per cent of GDP deficit target and wanted to negotiate an extension of a $25.1bn (£16.8bn) financing deal with international lenders.

“Obviously during the planning of next year’s budget we will have to reckon with whether we can meet [the three per cent goal],” Navracsics said yesterday.

“We hope we can meet this undertaking by the [previous] Bajnai government, which would bring the budget deficit below three per cent,” he said yesterday.